A firm that has implemented JIT had the following transactions:
1. Materals were purchased an account for $50,000
2. Materials were placed inta production.
3. Actual direct labour costs were $16,000.
4. Actual averhead costs were $30,000.
5. Conversion costs applied were $52,000.
6. All work was completed for the month.
7. All completed work was sald.
8. The variance is recoprized.
-Refer to the figure.Which of the following would NOT be an entry under the back flush system,assuming the second trigger point is the completion of goods?

Question

Quizplus · Accepted Answer

Under a backflush system, especially at the second trigger point being the completion of goods, the direct transfer of costs into finished goods or cost of goods sold is emphasized, bypassing the detailed tracking of work-in-process inventory. Therefore, the entry transferring materials into work-in-process inventory (B) would not typically occur, as materials and conversion costs are flushed directly to finished goods or cost of goods sold upon completion.